Is the US Losing the Clean Energy Race?

As the president pushes for a new energy strategy, China pushes ahead of the G20 pack in 2009.

Washington, D.C., United States [RenewableEnergyWorld.com]
Ready to move to new domestic issues after a win on health care, U.S. President Barack Obama has again turned his focus to energy. But many clean energy advocates are criticizing the President's plan, saying that it will put too much focus on oil and gas drilling, and not enough on renewables.

The U.S. came in eleventh in investment relative to the size of its economy, falling behind China, Brazil, Germany and the UK.

The details of the President's plan have not been fully laid out, but in recent days he has announced plans to increase offshore gas and oil drilling on the Outer Continental Shelf of the U.S. Some onlookers see this as a way for the President to get bipartisan support for a broader energy strategy that all political parties can support.

“He's clearly trying to mainstream it in the U.S....trying to get republicans and independents engaged in the issue as well — not just democrats,” says Michael Northrop, directror of sustainable development for the Rockefeller Brothers Fund. “I think that's a positive, especially as we move into a new debate around climate change legislation.”

And after a year of bitter partisan battles over health care, the White House could use any positive political bargaining chip it can get.

But some environmental groups and renewable energy advocates say this move contradicts Obama's earlier campaign pledge to avoid more offshore drilling and will delay an aggressive focus on renewables, putting the U.S. further behind other countries in the race to develop clean forms of energy.

A new report released from the Pew Charitable Trust shows that the U.S. is already getting outpaced by other G20 countries in renewable energy investment. Although the U.S. is seen as a leader in risk-taking and innovation, other countries like China and Brazil are investing more money in clean energy relative to the size of their economies.

The report, titled “Who's Winning the Clean Energy Race?” looked at the top 20 economies in the world, which make up around 90 percent of investment in renewables. Overall, the trends were positive: Since 2005, there has been a 230 percent increase in capital flow to the industry. Throughout that time period the U.S. has lead the pack with the most installed capacity and the most total yearly investment. Until last year that is.

China took the lead in 2009 as the country made a comprehensive effort to develop more wind, solar thermal and biomass, as well as scale up its solar PV manufacturing. The country invested $34.8 billion in renewables last year, which was $16 billion more than was invested in the U.S.

While the news is not surprising, given China's rapidly growing energy needs and its top-down approach to developing industries, the report highlights another telling statistic: The U.S. came in eleventh in investment relative to the size of its economy, falling behind China, Brazil, Germany and the UK.

The report authors conclude that U.S. policymakers and citizens should be “concerned about America’s competitive position in the clean energy marketplace.”

Some see this report as a good way to get the conversation around clean energy back on track. If the U.S. is to stay competitive in the changing global economy, it will need to match or surpass the investments being made by other G20 countries — especially China.

“I think it's a big part of how to talk about it. Clearly people's dander gets raised anytime you talk about an economic race with the Chinese. I think it's a very helpful frame for us to be working in,” says Northrop of the Rockefeller Brother's Fund.

China, of course, is sucking up oil around the world and developing far more coal power plants than wind or solar farms. So while total investment in renewables is increasing, the country's domestic efforts may be impeded by its dirty, centralized energy system. But its export industry will rival any country in the world.

Northrop points out that of the ten largest wind companies in the world, the U.S. only has one. And of the ten largest solar companies in the world, the U.S. has two. That's unacceptable, he says, given that the country – known as a bastion of innovation and risk taking — consumes 25% of the world's energy.

“I hope now that health care has passed in the U.S., the president will start to speak out more forcefully about this issue,” he says. “We need the public engaged and we need to get people off the fence – and if we can do that, the future looks bright.”

For a breakdown of the investment figures for each country, see the Pew report here.

23 Comments

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ANONYMOUS
April 19, 2010

Now I get word that Obama wants to permit Shell Oil to drill in the Arctic Øcean coast of AK. Why is this Pres selling out? Just to curry favor with tyranical politicians of the "NO" party?
This guy is becoming sad news. It is all a big money grab.
My motto; Just Do It! The early adopters may be the biggest winners, and as the world withers away, the alpha proffiteers will move to N. Russia with the rest of the mafia fear lords.
Even with RE soon, the topsoil depletion and population bloom is the next looming devastation for the exurban wet dreamers. Consumerism is nothing but a sold out government pyramid ponzi scheme and few can resist the wet dream. Change youe diaper, get a life, wakeup. Or not. Makes no difference to me.

sorry edwardtuner12 ,WIND ENERGY,SOLAR ENERGY and even SEACURRENTS ENERGY can supply all energy needs of the whole USA ,something even Nick Tesla said 100 years ago,costing him his career by being punished by the same greedy oil conglomarates that oppose CLEAN ENERGY DEVELOPMENT this days with all its money paid press and dirty lies.They do not give a fig about America or any country ,they just want higher margin profits
We can only hope they will be burn in paper dollars light up with oil

The problem is the green requirements. You can't do a thing without a thousand different studies and permits. You need freedom from this sort of thing. That is why we are behind and we will stay there. " But its a good thing to be green......Amen! Love.. Piece brother. Hippies rule..."

Guys after watching and hearing this discussion about climate change and global warming we are missing the fact that some day for sure oil reserves are going to be exhausted. So what we are going to do then? Wind energy definitely can't replace the fossil fuels. Nuclear power is too dangerous and can fall into wrong hands.I feel that solar energy if fully tapped can be used. Moreover a lot of job opportunities can be created as well. Yesterday I did a little bit of research about the solar power potential on FreeCleanSolar.com and found out very nice info. I am fully convinced that solar is the future. Any comments??

Pres. Obama is giving the right more oil and gas drilling, but in fact, he could tie them up with environmental regulations. In the meantime, renewable energy could surge ahead, especially if ordinary people vote with their dollars to go green. I've given up the idea of a federal solution to the problem. The real and only solution that this country can handle is through the pocketbook. It would help if we had more programs to encourage environmental retrofits by business and landlords. I live in an apartment that is just crying out for such a retrofit, but the owners don't have the money (or financial incentive) to do it. Actually, part of the problem in that regard is that they'd never make back their investment with higher rents since the apartments in question are under rent control and there is currently also a surplus of rentals because of the recession.

China is doing some amazing things in this area. Have a look at:
http://cleanip.com.au/2010/03/22/renewable-energy-technology-in-china-protect-and-profit/

ANONYMOUS
April 7, 2010

De mock racey is right. This is the USA. America usurps the shared moniker of many other nations in the western hemi. Politicians, especially presidents, love to use it..

Doesn't it sound plausable that politicians caused this series of problems, and for self serving reasons? They, the beaurocrats, can get funding for anything that Washington (not George) really wants. They simply have the corrupt federal reserve print more fiat money and the inflation wave (consumers) covers it. Meanwhile republocrats and demublickans blame each other with a wink and a nod and the stupid blasae public sucks it up, or, it is easy to shut someone down.

It was the "George" (not bush) that said; "government is not reason, it is not eloquent, it is force. Like fire, it is a dangerous servant and a fearful master."

And we must not trust the ones who profit from deceit and oppression. That does not leave very many out.

I certainly agree that a generous FIT would see RE products roll out like "barrels of oil" now do. When RE is mainstream the FIT's could be slowly receded. Is it so difficult to make a positive move of it for the early adopters. I call on everyone to petition relentlessly for this. That is what it will take. Let's reward the heroes of the world if we are to live in it freely and safely.. Hey, that includes me!! Hooray!!

Richard Carter, you are absolutely right...we have been losing for decades. However as part of this generation's youth, I still fail to understand how renewable energy, which is "old" technology could take almost 40 years to get the public's attention. I know part of the answer; price blah blah. In the 70s there was an appeal for renewables and Jimmy Carter installed solar panels on the white house. The reason China will be the leader is because of their government! Somehow renewables and energy efficiency have become partisan issues over the past 30 years and as a result, America cannot accomplish its objectives unless it has a sympathetic president. It's truly sad that it's taken this long and I fear it's the older generation that has sat on it's hands on this issue and they still have to DO something about it because they still have all the power. The youth can create enterprises and start action groups, but that only goes so far when there's a democracy of idiots.

ANONYMOUS
April 7, 2010

I have to wonder if Obama can spell FIT, as in Feed In Tariff, the only real incentive to get the renewable energy industry, which has been stuck in the dark ages, and move it into the twenty first century. The healthcare fiasco just set us back another year while even Ontario CAN has adopted a very aggressive FIT along with Germany and Denmarks extremely successful FIT with well defined positive results. Once FIT is passed in U.S., stay tuned, a breakthrough will be announced to public shortly thereafter. FIT is the key to success in the renewable energy industry.

We have been losing for decades.
After being in the industry for 3 years, I've come to the conclusion that it is a simple case of the American public-at-large simply has no will to change from their past habits. To be blunt, they are too lazy.
I've worked with every segment of the industry, and the sum total is that any renewable growth in the US is going to be for a few large, selective projects, funded by out-of-country investment, and any profit will leave the shores.
At some point-in-time, Americans have to want to change this chronic loss. It's as if the vast majority of the public is asleep when it comes to their lives, and renewables are only just another example. I can't believe they don't see this train coming right at them day after day, and they don't change. Lost jobs, lost industries, lost economy, lost quality education, lost health, lost environment, lost government. They literally have their heads in the sand, or I should say, stuck in reality shows, shopping, and drugs. I hate to say it, but they just no longer have the will to compete. Those of you who are younger, say under the age of 40 have nothing to compare today's terrible situation to; it's probably 'normal' for you. But for those of us older, who have had the opportunity to see, be part of, and build a better life, what we have today is a disaster. You really need to ask yourself if it's what you want, and if it isn't, you need to DO SOMETHING ABOUT IT. You need to go out and do something. We had similar problems in the 60's, but not anywhere near this bad. We took it to the streets and changed the world. It's your turn. Or, watch it all melt away, as it's been doing for the last decade.

I really think many of us and the general public (and definitely the administration) misses the point. The name of the game should be energy efficiency/load reduction followed by renewables of all kinds. We are all too eager to see solar or other renewables deployed as the magic bullet to save our planet and build the new green economy but until we can reduce our sinful ways and wasteful use of resources we are fighting a losing battle. Yes, we must have building codes that will force the building industry to stop making buildings with the same business as usual attitude. We also need to get our heads out of the sand and make the administration do the right thing for our global survival not our corporate survival. What good is a healthy economy without the health of the planetary species to enjoy it? This is it~ ONLY ONE PLANET!! We don't get a second one if we blow this one.

There are widespread fears about the U.S. losing its 'green' touch. Figures for the previous year indicate China is fast emerging as the planet's new renewable energy powerhouse. Not only did it replace the U.S. as the largest spender on clean energy in 2009 (for the first time in five years), but China is also the current world leader in the production of solar panels and installation of wind turbines (studies by the Pew Charitable Trusts). In terms of total amount of installed renewable energy too, the world's most populous country is all set to overtake the U.S. Thus there is every chance that unless it changes its policies to leverage more investment, the U.S. could miss out significantly in the clean energy arena.

Doesn't everyone "win" when China ramps up production of PV modules and installs all sorts of renewable energy initiatives?

Why do we have a knee-jerk reaction against China- even when their "winning" will drive the prices down for us as consumers (and the corresponding increase of ability to install PV systems)?

If they can produce modules (or whatever) for a better price and at good quality and get it to us for cheaper than we can produce it here- more power to them! That is a great use of resources.

We end up winning! Our resources may be able to be put to better use making something that we may have a competitive advantage in.

Lower PV module prices (wherever they are made) are a win win. Who cares who got paid (laborers wages) to weld the sucker together? If they import it here- we win. We can now put a complete turnkey PV system (modules, inverters, racking, flashing, etc.) in the consumers hand for under $4 a watt.

It is only a matter of time before we can drive this down further (if China keeps up their blistering pace) and PV installations will become commonplace. They can be the norm, rather than the exception.

Energy reduction and home insulation should not require government action, except to force landlords of tenanted properties to improve efficiency, as the financial benefits in energy saving are so immediat and clear.
Installation of solar heating and energy generation locally, either on dwellings or cooperatively in local communities may require some help from banks, energy companies or government.
Solar and wind power is already demonstrated. It need to be multiplied ten or one hundredfold, in order to reduce prices of manufacture and installation. This will create many new jobs, much needed in this recession.

Obama needs to focus on long term profits for our businesses. When Obama talks green energy it needs to be the green that business and the public understand, the green of $$$. Instead this administration, and all previous administrations, focus on short term "targeted" tax cuts and "investment" in future tech companies, that may or may not be a part of the energy solution, like .54 cents per gallon ethanol subsidies. The government needs a long term energy policy that focuses on the profit from using renewable fuels TODAY.

Long term and deep tax cuts on AE infrastructure, including any remodeling needed, AE equipment and labor. Long term tax cut on the profits from the sale of power from AE equipment. Tax cuts on the purchase of AE power....allow businesses to invest and make money in place of paying government penalties.

Put a computer chip in all gas pumps, trucks and automobiles that would give a tax cut for fuel savings at the pump or electric meter. 100% Tax break for the purchase of a HEV, EV and low mileage vehicles. Low interest loans for the purchase of a HEV or EV, 1% loans for the purchase of a fleet of HEV/EV vehicles. Low interest loans to companies and buildings for removing themselves from the power grid or getting a large percentage of their power off the grid.

$$$, green energy could be a reality today if the government would get out of the way and allow the private sector to lead.

Of course, the US is losing the clean energy race, especially to China. It is all over the web. And the nation will fall much further because it is too broke to do anything. I have been warning environmentalists and other lefties for years about supporting the fossil and nuclear fuel monopolies in exchange for token wind and solar mandates and subsidies, while they blocked other renewable technologies. So now broke and energy deficient as this country is, Obama had little choice but to promote nuclear and oil drilling. Nice work!

I don't think renewable energy investments are the best metric. We need research and exports and need to do enough installations to learn how, and to improve in that very important aspect of the system. We need to design regulatory and permitting systems that allow and/or encourage renewable energy installations.

What America needs most right now is to reduce overall energy consumption. Given that our per capita energy consumption is so much higher than any of the other countries mentioned, the cheapest (always good, necessary now) fastest way to reduce emissions is to reduce consumption.

If people chose not to do that voluntarily, then per unit energy prices will have to rise to accomplish the same task. At that time, renewables start to make more sense. Renewables would then be more competitive with fossil fuels, and would require a much smaller total investment to reach RPS targets.

The US is definitely losing the race right now, and not just in renewable energy, but in just about every other sector of the global economy as well. But it's not over yet and we still have a chance to catch up if we pick an area - hopefully renewable energy - and focus our resources and talents on simply becoming the best in the world. The trick is being united in our efforts toward that goal - if it keeps deniers quiet while we revolutionize the energy and economic systems that run our country, I won't complain (too loudly) about off shore drilling. Even if we stop burning the oil, we'll need it for chemicals and plastics.

Drilling for Geothermal energy would seem more productive in the long run. Twenty or thirty years from now, we will just have lots of drill holes in the ground or sea bed that lead to empty reservoirs. Our style is not sustainable for this century.

While offshore drilling clearly isn't a sustainable, long-term solution, it's dangerous for people to give up hope that the US is moving in the right direction. Personal decisions on energy efficiency are very important as are investments in renewable technology.

While we may be drilling offshore, your family could be installing Energy Star appliances, solar panels, or using outdoor solar lights instead of traditional landscape lighting. Reduce your own energy consumption to drive demand for those environmentally responsible products.

A centrally-planned pseudo-economy that's based on private central banking monopolies issuing fraudulent debt currency and stealing other people's petroleum (and lives) is at the core of most of today's institutional problems. Petro-banking warfare is a serious crime.

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I am a reporter with ClimateProgress.org, a blog published by the Center for American Progress. I am former editor and producer for RenewableEnergyWorld.com, where I contributed stories and hosted the Inside Renewable Energy Podcast. Keep...